On 21-5-2009 11:43, Invisible wrote:
> Oh *sweet*! Now they think that rather than getting rid of people, they 
> might just give us all a 10% pay cut.
> 
> Apparently, if we all unanimously agree to take a 10% pay cut, that will 
> take us *half* way to the break-even point. That plus their income 
> _assumptions_ (i.e., they're assuming that income is going to increase 
> soon) takes us to break-even. And they say (but it won't be in the 
> written document we'll all have to sign) that once we become profitable 
> again, they'll reverse the 10% cut.
> 
> So we have a choice: Either we all agree to accept a 10% pay cut 
> indefinitely, or some of us get the boot. And we have until close of 
> business *today* to decide.
> 
> Note again, we have to accept, in writing, a 10% pay cut. But they will 
> not put in writing that it's temporary. Note also that this cut isn't 
> even big enough to take us anywhere near break-even unless their income 
> assumptions turn out to be right. (In other words, they're expecting us 
> to get lots more work real soon now.)
> 
> Let me tell you, there wasn't much said in the meeting, but there were 
> some pretty unhappy boys and girls in there. Last month some accountant 
> came over from the USA and said everything is more or less OK. It's not 
> great, but it should get better shortly. This week, suddenly they're 
> talking about we must make savings, and in a few hours you need to 
> decide how we're going to do that. It's like... WTF changed since last 
> month?
> 
> Lots of unspoken questions in that room. I tell you, the atmosphere was 
> practically corrosive. Being in financial trouble is one thing. Being 
> left feeling like you weren't told the truth is another...

If the unemployment benefit is based on your last income it is also a 
10% cut on that if you are going to get sacked anyway either to get that 
other half or when they are closing the UK branch next month.
So in general this kind of 'offer' is only acceptable if
- your official salary stays the same but you get a percentage of it
- it is temporary
- the mother company guarantees that the UK branch will not be closed as 
long as this measure is in place
- the guy who offers it also accepts a cut in salary. Preferably more 
that that 10% to show his confidence in the outcome.

Did you check if such a thing is even legal in the UK? What do the 
unions say about this?

I think you have also to take into account how likely it is that it will 
get better. Is the management competent and how well do they know the 
market are some of the most important questions.

I know not in details how the actual situation is, but based on what I 
heard I would not agree.

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